Managerial Accounting 2302 Exam! Trivia Test! Quiz

15 Questions | Total Attempts: 122

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Managerial Accounting Quizzes & Trivia

How ready re you for the managerial accounting 2302 exam? Managerial accounting provides the information needed to fuel the decision-making process by managers. If you have some doubts on how well you remember the things you learnt before the exam, the quiz below is exactly what you need to refresh your memory. Do give it a shot and see how much more you actually remember. All the best and keep practicing.


Questions and Answers
  • 1. 
    Financial statement analysis involves all of the following except: 
    • A. 

      The application of analytical tools to general-purpose financial statements and related data for making business decisions

    • B. 

      Transforming accounting data into useful information for decision-making

    • C. 

      Helping users make better decisions

    • D. 

      Helping to reduce uncertainty in decision-making

    • E. 

      Assuring that the company will be more profitable in the future

  • 2. 
    The building blocks of financial statement analysis do not include:
    • A. 

      External analyst services

    • B. 

      Solvency

    • C. 

      Profitability

    • D. 

      Market prospects

    • E. 

      Liquidity and efficiency

  • 3. 
    The ability to meet short term obligations and to efficiently generate revenues is called: 
    • A. 

      Liquidity and Efficiency

    • B. 

      Solvency

    • C. 

      Profitability

    • D. 

      Market Prospects

    • E. 

      Creditworthiness

  • 4. 
    Three of the most common tools of financial analysis are:
    • A. 

      Financial reporting, ratio analysis, vertical analysis

    • B. 

      Ratio analysis, horizontal analysis, financial reporting

    • C. 

      Horizontal analysis, vertical analysis, ratio analysis

    • D. 

      Trend analysis, financial reporting, ratio analysis

    • E. 

      Vertical analysis, political analysis, horizontal analysis

  • 5. 
    A company's sales in Year 1 were $250,000 and in Year 2 were $287,500. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is: 
    • A. 

      87%

    • B. 

      100%

    • C. 

      115%

    • D. 

      15%

    • E. 

      13%

  • 6. 
    Common-size statements: 
    • A. 

      Reveal changes in the relative importance of each financial statement item to a base amount

    • B. 

      Do not empathize the relative importance

    • C. 

      Compare financial statements over time

    • D. 

      Show the dollar amount of change for financial statement items

  • 7. 
    Managerial accounting is different from financial accounting in that:
    • A. 

      Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization

    • B. 

      Managerial accounting never includes non monetary information

    • C. 

      Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions

    • D. 

      Managerial accounting is used extensively by investors, whereas financial accounting is only used by creditors

  • 8. 
    Which of the following items is NOT a management concept that was created to improve companies' performances?
    • A. 

      Just-in-time manufacturing

    • B. 

      GAAP constraints and guidelines

    • C. 

      Total quality management

    • D. 

      Continuous improvement

    • E. 

      Customer orientation

  • 9. 
    An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:
    • A. 

      Continuous improvement

    • B. 

      Customer orientation

    • C. 

      Just-in-time manufacturing

    • D. 

      Theory of constraints

    • E. 

      Total quality management

  • 10. 
    A direct cost is a cost that is:
    • A. 

      Identifiable as controllable

    • B. 

      Traceable to the company as a whole

    • C. 

      Does not change with the volume of activity

    • D. 

      Traceable to a single cost object

    • E. 

      Traceable to multiple cost objects

  • 11. 
    A classification of costs that determines whether a cost is expensed to the income statements or capitalized to inventory is:
    • A. 

      Fixed versus Variable

    • B. 

      Direct versus Indirect

    • C. 

      Service versus Manufacturing

    • D. 

      Product versus Period

  • 12. 
    Costs that are capitalized as inventory when they are incurred are called:
    • A. 

      Period costs

    • B. 

      Product costs

    • C. 

      General costs

    • D. 

      Administrative costs

    • E. 

      Fixed costs

  • 13. 
    The cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:
    • A. 

      Unspecified labor

    • B. 

      Direct labor

    • C. 

      Indirect labor

    • D. 

      Basic labor

  • 14. 
    Manufacturing costs other than direct materials and direct labor, and are not readily traceable to specific units or batches of production are called: 
    • A. 

      Non-manufacturing costs

    • B. 

      Prime costs

    • C. 

      Factory overhead

    • D. 

      Preproduction costs

  • 15. 
    Which of the following costs is not included in factory overhead?
    • A. 

      Payroll taxes on the wages of factory supervisors

    • B. 

      Indirect labor

    • C. 

      Depreciation of manufacturing equipment

    • D. 

      Manufacturing supplies used

    • E. 

      Direct materials